Conforming Loan Limits are the maximum mortgage amounts that Fannie Mae and Freddie Mac can generally purchase or guarantee under their standard conforming guidelines.
The limits are set annually by the Federal Housing Finance Agency (FHFA) and vary based on:
- Property location — limits can be higher in designated high-cost
- Number of units — a 1-unit property has a different limit than a 2-, 3-, or 4-unit property
- Year — FHFA typically updates the limits annually based on changes in U.S. home prices
For 2026, the baseline conforming limit for a one-unit property is $832,750. The ceiling in most high-cost areas is $1,249,125.
The simplest way to think about it
The conforming loan limit is the dividing line between a mortgage that can generally fit within the Fannie Mae/Freddie Mac conforming system and one that exceeds that system’s loan-size limits.
For example:
$800,000 mortgage
- Below the 2026 baseline limit of $832,750
- Potentially conforming
For example:
$900,000 mortgage
- Above the 2026 baseline limit of $832,750
- Could be jumbo or could still be conforming in a high-cost County with local limit
That’s why “anything over $832,750 is a jumbo loan IS NOT technically correct. Your mortgage lender will have to determine the applicable limit for the property’s county and number of units first.
It doesn’t have to be a single-family home.1
A borrower purchasing a duplex, triplex, or fourplex may have a substantially higher conforming loan limit than someone purchasing a one-unit property in the same geographic area.
FHFA publishes a complete county-level dataset containing separate limits for one-, two-, three-, and four-unit properties.2
Fannie Mae also provides a loan limit look-up tool that allows users to look up applicable limits by geographic area or property address.3 Fannie Mae specifically cautions that the statutory high-cost ceiling should not simply be assumed to be the applicable limit; the actual county/MSA limit should be checked..
Determine the actual loan amount
This is where another common misunderstanding occurs. The conforming loan limit applies to the loan amount, NOT the purchase price.
Suppose you are purchasing a:
$1,000,000 single-family home.
You don’t automatically have a $1,000,000 mortgage.
If you put a $200,000 down payment:
$1,000,000 purchase price
-200,000 down payment
= $800,000 loan
If applicable conforming loan limit is $832,750 in the county where you’re purchasing, the $800,000 loan is within the baseline conforming loan limit, assuming the loan otherwise meets applicable requirements.
But if you ONLY put $100,000 down payment:
$1,000,000 purchase price
-100,000 down payment
= $900,000 loan
Now you have to compare the $900,000 loan against the applicable county loan limit. If the county’s one-unit conforming loan limit is $832,750, the $900,000 loan exceeds that limit set by the county, and your loan would generally be considered a jumbo loan.
Three questions
Where is the property located? Identify the County or applicable geographic area?
How many units does the property have?
How much are you actually borrowing
These three pieces of information allow you to determine whether the proposed loan falls within the applicable County’s conforming loan limit.
County vs. High-Cost Area
For example, you might see that the maximum possible conforming loan limit for a one-unit property is $1,249,125 in most high-cost areas.
That doesn’t mean every County has a $1,249,125 conforming loan limit. It’s the maximum ceiling, NOT the universal limit. Fannie Mae explicitly states that Lenders must determine the applicable loan limit for the particular county or MSA rather simply using the statutory ceiling.
Think of it this way:
$832,750 = national baseline
$1,249,125 = maximum one-unit ceiling in most eligible high-cost areas.
But somewhere between those numbers may be the actual loan limit applicable to a particular County.
Exceeding the conforming loan limit is only one part of the mortgage analysis. A loan still has to meet the applicable underwriting, property appraisal, occupancy, credit, income and other program requirements.
Only after analyzing and answering the Three Q’s should you begin comparing conforming, high-balance conforming, jumbo loan or other financing alternatives.
This is the difference between simply shopping for a mortgage and actually structuring a mortgage.
If you would like to know what your current income could qualify for and would like to get more information or to find out an alternative approach to home affordability.
Let’s be friends on social media, like, subscribe, follow and say hello.
Links to References: